Compensation is all income in the form of money, direct or indirect goods received by employees in return for services provided to the company. Work Motivation is a skill in directing employees and organizations to want to work successfully, so that the wishes of the employees and the objectives of the organization at the same time achieved. Then employee performance is to conduct an activity and improve in accordance with the responsibility with highly expected results. From the above definition of performance is emphasized to be responsible for achieving a good result, highly expected by the company. Therefore, in this study the authors used compensation and work motivation as free variables and employee performance as bound variables.In this research the method used is quantitative method with associative approach. In this study, the population was employees of PT. Pos Indonesia (Persero) Medan. How to take samples in this study is to use probability sampling technique with simple random sampling approach as many as 50 respondents. Data collection is done by distributing questionnaires to respondents. Data analysis techniques use validity test, reliability test, classic assumption test, multiple linear regression analysis, t test, F test, and determination coefficient test (R2), operated through SPSS 16 program.In this research the method used is quantitative method with associative approach. In this study, the population was employees of PT. Pos Indonesia (Persero) Medan. How to take samples in this study is to use probability sampling technique with simple random sampling approach as many as 50 respondents. Data collection is done by distributing questionnaires to respondents. Data analysis techniques use validity test, reliability test, classic assumption test, multiple linear regression analysis, t test, F test, and determination coefficient test (R2), operated through SPSS 16 program.The results of the test t variable compensation value t calculate 5,610 > t table of 2,009 means compensation affects employee performance and work motivation variable t calculate 3,044 > t table of 2,009 means work motivation affects employee performance. F test variable compensation and work motivation value F calculates 200.292 > F table of 3.23 indicates that compensation and work motivation together affect employee performance. The coefficient of determination (R2) of 0.895 showed that the variable compensation and work motivation influenced employee performance by 89.5% and the remaining 10.5% was influenced by other factors that were not studied in this study. The conclusions of the study showed that compensation has a significant effect on employee performance and work motivation has a significant effect on employee performance, simultaneously compensation and work motivation have a significant effect on employee performance.
Compensation, Work Motivation, Employee Performance
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